Freeport-McMoRan Commences Exchange Offers and Consent
Solicitations

November 29, 2016 11:35 PM Eastern Standard Time

PHOENIX--(BUSINESS WIRE)--Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has commenced
offers to eligible holders to exchange any and all of the outstanding
senior notes issued by Freeport-McMoRan Oil & Gas LLC (FM O&G), FCX Oil
& Gas LLC and FMSTP Inc., as co-issuers, and guaranteed by FCX for (1)
new senior notes to be issued by FCX and guaranteed by FM O&G and (2)
cash.

The exchange offers and consent solicitations will expire at 11:59 p.m.,
New York City (NYC) time, on December 27, 2016, unless extended. To be
eligible to receive the applicable total exchange consideration, which
includes the early tender premium of $30 principal amount of new notes,
eligible holders of existing notes must validly tender their existing
notes at or prior to 5:00 p.m., NYC time, on December 12, 2016, unless
extended.

The following table sets forth the exchange consideration for each
$1,000 principal amount of existing notes for which the new senior notes
and cash are being offered:

Title of Series of Existing Notes

Aggregate Principal Amount Outstanding

(in millions)

First Call Date of New FCX Notes to be Issued Not Subject to
Make-Whole

Exchange

Consideration (new notes principal amount) if Tendered on or
before December 12, 2016

Exchange Consideration (new notes principal amount) if Tendered
after December 12, 2016, and on or before December 27, 2016

Cash Consideration

6.125% Senior

Notes due 2019

$236.9

No change; remains June 15, 2016

$1,000

$970

$2.50

6 1/2% Senior Notes due 2020

$617.0

No change; remains November 15, 2016*

$1,000

$970

$3.75

6.625% Senior

Notes due 2021

$261.5

No change; remains May 1, 2016*

$1,000

$970

$3.75

6.75% Senior

Notes due 2022

$448.5

Extended one year to February 1, 2018

$1,000

$970

$5.00

6 7/8% Senior

Notes due 2023

$778.5

Extended two years to February 15, 2020

$1,000

$970

$12.50

*The optional redemption prices have been increased by 0.25%
in each case, other than in the case of optional redemption at 100.00%.

Each series of newly issued FCX senior notes will have an interest rate
and maturity date that is identical to the interest rate and maturity
date of the applicable series of existing notes. The new notes will be
senior unsecured obligations of FCX and will rank equally in right of
payment with all other existing and future senior unsecured indebtedness
of FCX.

Concurrently with the exchange offers, FCX is also soliciting consents
from eligible holders of the existing notes to amend the indentures
governing the existing notes to eliminate certain of the covenants,
restrictive provisions and events of default and conform certain
covenants to those in the outstanding notes of FCX pursuant to the terms
and subject to the conditions set forth in the offering materials. The
consent of the holders of a majority in aggregate principal amount of
each applicable series of existing notes outstanding, acting together as
one class for that series, will be required in order to adopt the
proposed amendments to the existing indenture for that series.

Existing notes that are not validly tendered or that are validly
tendered but validly withdrawn will remain outstanding and will continue
to be subject to their existing terms despite the completion of the
exchange offers and the related consent solicitations. However, if any
exchange offer and related consent solicitation is consummated and the
proposed amendments to the applicable existing indenture are effected,
such amendments will also apply to all related existing notes not
exchanged in such exchange offer and related consent solicitation and
those existing notes will no longer have the benefit of the protection
of the covenants, restrictive provisions and events of default
eliminated by the applicable proposed amendments and will be subject to
the covenants as modified by the proposed amendments.

Tenders of existing notes may not be withdrawn after 5:00 p.m., NYC
time, on December 12, 2016, unless extended, except in certain limited
circumstances as set forth in the offer materials. Eligible holders of
existing notes may not deliver a consent in the applicable consent
solicitation without tendering existing notes in the applicable exchange
offer. If an eligible holder of existing notes tenders existing notes in
any exchange offer, that holder will be deemed to deliver its consent,
with respect to the principal amount of such tendered existing notes, to
the applicable proposed amendments.

The exchange offers and related consent solicitations are being made
pursuant to the terms and subject to the conditions set forth in an
offering memorandum and consent solicitation statement and a related
letter of transmittal, each dated November 29, 2016.

The new senior notes have not been registered with the Securities and
Exchange Commission under the Securities Act of 1933, as amended
(Securities Act), or any state or foreign securities laws. The new
senior notes may not be offered or sold in the United States or to any
U.S. persons except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act.
Only persons who certify that they are (1) “qualified institutional
buyers” within the meaning of Rule 144A under the Securities Act or (2)
not “U.S. persons” and are outside of the United States within the
meaning of Regulation S under the Securities Act, are authorized to
receive and review the offer materials. The complete terms and
conditions of the exchange offers and related consent solicitations are
described in the offer materials, copies of which may be obtained by
contacting D.F. King & Co., Inc., the exchange agent and information
agent in connection with the exchange offers and related consent
solicitations, at (800) 967-5058 (U.S. toll-free) or (212) 269-5550
(banks and brokers) or by visiting www.dfking.com/fcx.
Holders that are not eligible holders will not be able to receive such
documents, but FCX will make alternative arrangements available. Such
holders should contact D.F. King & Co., Inc. to receive information
about arrangements available to them.

The exchange offers and related consent solicitations are subject to the
satisfaction of certain conditions, as described in the offer materials,
including, among other things, that each exchange offer and consent
solicitation is conditioned upon the completion of each of the other
exchange offers and consent solicitations, which condition may be waived
by FCX at any time prior to the expiration time in its sole discretion.

If you are a holder of existing notes and wish to participate in an
exchange offer for which you are eligible and your existing notes are
held by a custodial entity, such as a commercial bank, broker, dealer,
trust company or other nominee, you must instruct that custodial entity
to tender your existing notes on your behalf pursuant to the procedures
of that custodial entity. Please contact your custodial entity as soon
as possible to give them sufficient time to meet your requested
deadline. Beneficial owners are urged to appropriately instruct their
commercial bank, broker, custodian or other nominee at least five
business days prior to the early tender deadline or the expiration time,
as applicable, in order to allow adequate processing time for their
instruction.

FCX is a premier U.S.-based mining company with an industry-leading
global portfolio of mineral assets. FCX is the world's largest publicly
traded copper producer.

FCX’s portfolio of assets includes the Grasberg minerals district in
Indonesia, one of the world's largest copper and gold deposits;
significant mining operations in the Americas, including the large-scale
Morenci minerals district in North America and the Cerro Verde operation
in South America.

Cautionary Statement Regarding Forward-Looking Statements:This
press release contains forward-looking statements, which are all
statements other than statements of historical facts, such as
expectations related to the exchange offers and completion of the
consent solicitations to amend the indentures governing the existing
notes. The words “anticipates,” “may,” “can,” “plans,” “believes,”
“estimates,” “expects,” “projects,” “targets,” “intends,” “likely,”
“will,” “should,” “to be,” ”potential" and any similar expressions are
intended to identify those assertions as forward-looking statements. FCX
cautions readers that forward-looking statements are not guarantees of
future performance and actual results may differ materially from those
anticipated, projected or assumed in the forward-looking statements.
Important factors that can cause FCX’s actual results to differ
materially from those anticipated in the forward-looking statements
include the delivery of the requisite consents from the holders of each
series of notes to effect the exchange offers and the proposed
amendments to the indentures governing the existing notes and other
factors described in more detail under the heading “Risk Factors” in
FCX's Annual Report on Form 10-K for the year ended December 31, 2015,
filed with the U.S. Securities and Exchange Commission (SEC) as updated
by FCX’s subsequent filings with the SEC.

Investors are cautioned that many of the assumptions upon which FCX's
forward-looking statements are based are likely to change after the
forward-looking statements are made, including for example commodity
prices, which FCX cannot control, and production volumes and costs, some
aspects of which FCX may not be able to control. Further, FCX may make
changes to its business plans that could affect its results. FCX
cautions investors that it does not intend to update forward-looking
statements more frequently than quarterly notwithstanding any changes in
its assumptions, changes in business plans, actual experience or other
changes, and FCX undertakes no obligation to update any forward looking
statements.